Financial services group IFG has reported a pre-tax deficit of €32.8 million for last year after a disastrous foray into the sterling endowments market.
IFG withdrew from the sector but not before sustaining a €22.6 million once-off loss. The group also pulled out of the financial services middle market because of low margins and, in a bid to trim overheads, closed 12 offices in Ireland and Britain.
In 2001, the group recorded a pre-tax profit of €10.4 million.
Chief executive Mr Richard Hayes pointed to a rise in revenue to €85.2 million from €81.6 million and a 36 per cent rise in profits across international, corporate and trustee operations.
He scotched suggestions that a management buyout (MBO) might be imminent. Although there have been approaches from groups interested in funding an MBO, Mr Hayes said his priority was restoring value to investors. IFG's shares plunged from €2.70 to 48 cents in the past 12 months.
"After a year in which we have exited our investment business and restructured our advisory business, we are now focused on building on our recurring income base through providing independent financial advisory and administrative services," he said.
IFG has high hopes for its mortgage processing business in the Republic and expects to increase its number of franchises in 2003 to 134 from 80. The company favours organic growth and, while not ruling out fresh acquisitions this year, is not actively seeking new opportunities.
Adjusted earnings per share were 12.22 cents, down from 14.49 cent in 2001. The board has recommended a final dividend of 1.47 cents per share, which, when added to the interim dividend, brings the total dividend to 2.2 cents.
Turnover was €85.19 million against €81.6 million last year. Total group debt was €66.7 million, including ring-fenced debt of €19.3 million (reduced to €3.3 million since year-end). Core debt stands at €47.3 million, of which €26.3 million is listed in the balance sheet as part of a deferred consideration payable. Recurring income credited was €22 million, a 37.5 per cent rise over 2001.
IFG has interests in Ireland, Britain and Geneva.
